The present invention relates to methods of using a cellular phone or other wireless communication device communicating with a payment processor to confirm, authorise purchases over the Internet and provide a simple verification of the valid purchase. The purchase cost is debited from the buyer's prepaid account with the telecommunication provider or in the case of non prepaid buyers, accrued as a payable item on their monthly telecommunication statement. This same purchase amount is then credited to the payee's telecommunication account. There is no transfer of funds from any accounts either from a financial institution or otherwise. Merchants receiving payment will have their own telecommunication credits in dollars recorded in their statements and the payer will have the telecommunication debits recorded for non prepaid accounts to be settled later according to the terms as set by the telecommunication provider. Other terms such as a ceiling of max purchase cost may be set. This invention is primarily designed for small value items.
Prior to the present invention, cellular phones and/or other wireless communication devices have been used in a variety of different procedures involving the transfer of funds between different accounts involving financial institutions and different accounts. These procedures leave something to be desired in that they are unduly complicated and less convenient and/or less secure and costly.